Lululemon Athletica (NASDAQ:LULU) Stock Price Down 7.2% Following Analyst Downgrade

Shares of Lululemon Athletica Inc. (NASDAQ:LULU) fell 7.2% during trading on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $457.00 to $338.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Lululemon Athletica traded as low as $251.96 and last traded at $252.56. 3,165,457 shares changed hands during trading, an increase of 55% from the average session volume of 2,041,338 shares. The stock had previously closed at $272.06.

Other equities analysts have also recently issued research reports about the stock. Wells Fargo & Company reduced their price target on shares of Lululemon Athletica from $425.00 to $350.00 and set an “equal weight” rating on the stock in a report on Thursday, June 6th. TD Securities reduced their target price on Lululemon Athletica from $515.00 to $437.00 and set a “buy” rating on the stock in a research note on Wednesday, May 29th. Stifel Nicolaus increased their target price on Lululemon Athletica from $410.00 to $416.00 and gave the company a “buy” rating in a report on Thursday, June 6th. Piper Sandler cut their price target on Lululemon Athletica from $525.00 to $470.00 and set an “overweight” rating for the company in a report on Tuesday, April 9th. Finally, Telsey Advisory Group decreased their price objective on Lululemon Athletica from $550.00 to $470.00 and set an “outperform” rating on the stock in a research note on Thursday, June 6th. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and twenty-three have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $423.74.

Hedge Funds Weigh In On Lululemon Athletica

A number of hedge funds have recently made changes to their positions in the business. CoreCap Advisors LLC acquired a new position in shares of Lululemon Athletica during the fourth quarter worth about $285,000. CVA Family Office LLC acquired a new position in Lululemon Athletica during the 4th quarter worth approximately $74,000. Pacer Advisors Inc. boosted its holdings in Lululemon Athletica by 203.9% in the 4th quarter. Pacer Advisors Inc. now owns 15,233 shares of the apparel retailer’s stock worth $7,788,000 after acquiring an additional 10,221 shares during the period. Kingswood Wealth Advisors LLC grew its position in Lululemon Athletica by 22.7% in the fourth quarter. Kingswood Wealth Advisors LLC now owns 1,097 shares of the apparel retailer’s stock valued at $561,000 after acquiring an additional 203 shares in the last quarter. Finally, Artemis Investment Management LLP purchased a new stake in shares of Lululemon Athletica during the fourth quarter valued at approximately $456,000. Hedge funds and other institutional investors own 85.20% of the company’s stock.

Lululemon Athletica Price Performance

The firm has a market capitalization of $31.57 billion, a price-to-earnings ratio of 20.25, a PEG ratio of 1.40 and a beta of 1.26. The business’s 50-day moving average price is $303.63 and its 200 day moving average price is $380.66.

Lululemon Athletica (NASDAQ:LULU) last issued its quarterly earnings data on Wednesday, June 5th. The apparel retailer reported $2.54 EPS for the quarter, topping analysts’ consensus estimates of $2.38 by $0.16. The firm had revenue of $2.21 billion for the quarter, compared to analyst estimates of $2.20 billion. Lululemon Athletica had a net margin of 16.09% and a return on equity of 42.64%. The firm’s revenue was up 10.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.28 EPS. As a group, sell-side analysts expect that Lululemon Athletica Inc. will post 14.29 earnings per share for the current year.

Lululemon Athletica declared that its board has approved a share buyback plan on Wednesday, June 5th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the apparel retailer to purchase up to 2.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

About Lululemon Athletica

Lululemon Athletica Inc, together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness-inspired accessories.